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Yahoo
23-05-2025
- Business
- Yahoo
5 Big Data Stocks to Buy for Stellar Returns in the Short Term
Big Data refers to a vast and diverse collection of structured, unstructured and semi-structured data that inundates businesses on a day-to-day basis. The big data space focuses on companies that process, store and analyze data, and provide data mining, transformation, visualization and predictive analytics tools. Here, we have selected five such companies — Confluent Inc. CFLT, Blackbaud Inc. BLKB, Sprout Social Inc. SPT, HubSpot Inc. HUBS and Teradata Corp. TDC. These stocks have double-digit short-term price upside potential. Each of our picks carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here. Big Data is utilized in advanced analytics applications like predictive modeling and machine learning to solve business problems and make informed decisions. The latest high-end digital mobility advancements, including the Internet of Things (IoT) and artificial intelligence (AI), have led to rapid growth in data. Consequently, new big data tools have emerged to collect, process, and analyze data to derive maximum value out of it. Big data offers corporations better decision-making and risk management abilities. It has also increased agility and innovation, making operations more efficient and resulting in improved customer experiences. The chart below shows the price performance of our five picks in the past month. Image Source: Zacks Investment Research Zacks Rank #2 Confluent operates a data streaming platform in the United States and internationally. CFLT provides platforms that allow customers to connect their applications, systems, and data layers comprising Confluent Cloud, a managed cloud-native software-as-a-service (SaaS), and Confluent Platform, an enterprise-grade self-managed software. CFLT serves banking and financial services, retail and ecommerce, manufacturing, automotive, telecommunication, gaming, insurance, and technology industries, as well as the public sector. CFLT has an expected revenue and earnings growth rate of 19% and 32.4%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 20.5% in the past 30 days. The short-term average price target of brokerage firms for the stock represents an increase of 28.9% from the last closing price of $21.05. The brokerage target price is currently in the range of $22-$36. This indicates a maximum upside of 71% and no downside. Zacks Rank #1 Blackbaud is engaged in the provision of cloud software and services in the United States and internationally. BLKB's first-quarter 2025 results reflect solid execution of its strategic goals, with organic revenue growth, improved profitability and stock buybacks. BLKB remains on track to achieve Rule of 45 status by 2030 and expects continued free cash flow margin expansion. Robust free cash flow cushions BLKB's stock repurchase strategy. In the first quarter, BLKB repurchased around 4% of its outstanding shares, aligning with its 2025 plan to buy back 3% to 5%. Adjusted EBITDA margin reached 34.3% in the first quarter. For 2025, Blackbaud expects adjusted EBITDA margin in the range of 34.9% to 35.9%. Blackbaud has an expected revenue and earnings growth rate of -3.1% and 17.9%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 8.4% in the past 30 days. The short-term average price target of brokerage firms for the stock represents an increase of 10.7% from the last closing price of $62.12. The brokerage target price is currently in the range of $60-$85. This indicates a maximum upside of 36.8% and a maximum downside of 3.4%. Zacks Rank #2 Sprout Social designs, develops, and operates a web-based social media management platform in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. SPT provides cloud software for social messaging, data and workflows in a unified system of record, intelligence, and action. SPT offers AI-powered solutions, such as publishing and scheduling, social customer care, reporting and analytics, social listening and business intelligence, reputation management, social commerce, influencer marketing, employee advocacy, and automation and workflows. Sprout Social has an expected revenue and earnings growth rate of 11.3% and 20.6%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 10.3% in the past 30 days. The short-term average price target of brokerage firms for the stock represents an increase of 30.7% from the last closing price of $21.55. The brokerage target price is currently in the range of $18-$42. This indicates a maximum upside of 94.9% and a maximum downside of 16.5%. Zacks Rank #2 HubSpot provides a cloud-based customer relationship management platform for businesses in the Americas, Europe, and the Asia Pacific. HUBS is witnessing steady multi-hub adoption from enterprise customers in the premium market. Pricing optimization in HUBS' starter edition is leading to solid client additions in the lower end of the market. The integration of HubSpot AI, which includes state-of-the-art features, such as AI assistance, AI agents, AI insights and ChatSpot, is driving more value to customers. HUBS' seat pricing model lowers the barrier for customers to get started with its business and mitigates pricing friction for upgrades. The growing adoption of inbound applications is a tailwind. HubSpot has an expected revenue and earnings growth rate of 15.4% and more than 100%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 49% in the past 30 days. The short-term average price target of brokerage firms for the stock represents an increase of 19% from the last closing price of $621.25. The brokerage target price is currently in the range of $645-$930. This indicates a maximum upside of 49.7% and no downside. Zacks Rank #2 Teradata provides a connected hybrid cloud analytics and data platform in the United States and internationally. TDC is benefiting from strong cloud ARR growth. TDC's AI and hybrid cloud innovations, supported by strategic partnerships with NVIDIA, Microsoft, and Google are strengthening its market position. TDC's advanced AI solutions, particularly in Customer Experience AI, are in high demand as businesses prioritize data-driven insights. TDC's expertise in providing scalable, cloud-based analytics positions it well in growing markets like AI, data centers, and digital transformation. Teradata has an expected revenue and earnings growth rate of -6.5% and -2.1%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has remained unchanged in the past 30 days. The short-term average price target of brokerage firms for the stock represents an increase of 18.7% from the last closing price of $21.82. The brokerage target price is currently in the range of $21-$35. This indicates a maximum upside of 60.4% and a maximum downside of 3.8%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Teradata Corporation (TDC) : Free Stock Analysis Report Blackbaud, Inc. (BLKB) : Free Stock Analysis Report HubSpot, Inc. (HUBS) : Free Stock Analysis Report Sprout Social, Inc. (SPT) : Free Stock Analysis Report Confluent, Inc. (CFLT) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
16-05-2025
- Business
- Yahoo
Jim Cramer on Confluent, Inc. (CFLT): ‘I'm Not Going To Recommend The Stock Here'
We recently published an article titled In this article, we are going to take a look at where Confluent, Inc. (NASDAQ:CFLT) stands against the other stocks Jim Cramer recently talked about. During the most recent episode of Mad Money, which aired on Monday, the 12th of May, Jim Cramer discussed the recent market rally and encouraged his viewers to stay invested. He also emphasized the importance of earnings, saying: 'Earnings matter again, okay? That's what happened last night when the United States and China reached an agreement, however temporary, to hold off trade armageddon. The rollback of the exorbitant tariffs to much more reasonable levels caused the stock market to explode.' READ ALSO: AND Although Cramer was happy about the market's recovery, he reminded his viewers that the S&P 500 is still flat on a year-to-date basis and discussed how other regions are doing: 'Now don't get me wrong, I'm glad it happened, but I just spent a week in Europe, and it is stunning how much better the markets are doing over there.' His final reminder was for his viewers to just stay invested in the market and avoid trying to time the market, saying: 'Bottom line: It's better to stay in, stay on, and let her ride than to try to pick the perfect moment to trade in and out and in and out of the stock market. By the way, that's not much of a strategy. It's more of a game of chicken where there are no winners, just losers who think they are smarter than the average bear.' For this article, we compiled a list of 10 stocks that were discussed by Jim Cramer during the Mad Money episode that aired on the 13th of May 2024. We then calculated their performance for the past 12 months, until May 13th, 2025, market close. We have also included the hedge fund sentiment for the stocks, which we sourced from Insider Monkey's Q4 2024 database of over 900 hedge funds. The stocks are listed in the order that Cramer mentioned them. Please note that this article mentions Jim Cramer's previous opinions and may not account for any changes to his opinions regarding the stocks that are mentioned. It is primarily an examination of how his previously provided opinions have panned out. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). A team of consultants in suits, discussing the importance of stream governance for real-time was asked about Confluent, Inc. (NASDAQ:CFLT) by a longtime viewer impressed by its recent earnings beat. While acknowledging its potential at the time, Cramer voiced skepticism: "Oh my God, I mean — look, that is — Gregory is so right. If this gets together, this thing could just be a rocket ship. But if it doesn't — I'm going to have to say I think the chances are that it doesn't. And I'm not going to recommend the stock here." Jim Cramer's skepticism was well-placed, as the stock dropped 22.83% since his comment. Confluent, Inc. (NASDAQ:CFLT) is a data infrastructure company that builds real-time data streaming platforms based on Apache Kafka for enterprises. Overall CFLT ranks 1st on our list of the stocks Jim Cramer recently discussed. While we acknowledge the potential of CFLT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than CFLT but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
14-05-2025
- Business
- Yahoo
CFLT Q1 Earnings Call: Confluent Raises Profit Outlook, Lowers Revenue Guidance Amid Cloud Optimization Trends
Data infrastructure software company, Confluent (NASDAQ:CFLT) reported revenue ahead of Wall Street's expectations in Q1 CY2025, with sales up 24.8% year on year to $271.1 million. On the other hand, next quarter's revenue guidance of $267.5 million was less impressive, coming in 3.8% below analysts' estimates. Its non-GAAP profit of $0.08 per share was 16.5% above analysts' consensus estimates. Is now the time to buy CFLT? Find out in our full research report (it's free). Revenue: $271.1 million vs analyst estimates of $264.3 million (24.8% year-on-year growth, 2.6% beat) Adjusted EPS: $0.08 vs analyst estimates of $0.07 (16.5% beat) Adjusted Operating Income: $11.59 million vs analyst estimates of $8.01 million (4.3% margin, 44.6% beat) The company dropped its revenue guidance for the full year to $1.11 billion at the midpoint from $1.12 billion, a 1.3% decrease Management raised its full-year Adjusted EPS guidance to $0.36 at the midpoint, a 2.9% increase Operating Margin: -37.3%, up from -51.3% in the same quarter last year Free Cash Flow was -$32.99 million, down from $29.12 million in the previous quarter Net Revenue Retention Rate: 117%, in line with the previous quarter Billings: $267.3 million at quarter end, up 26.1% year on year Market Capitalization: $7.87 billion Confluent's first quarter results were shaped by continued demand for its data streaming platform, with management pointing to strong customer adoption across both cloud and on-premise solutions. CEO Jay Kreps emphasized the critical role Confluent plays in mission-critical applications, citing real-time workloads in sectors like financial services and retail. Kreps highlighted that the addition of 340 net new customers, the highest in three years, was driven by both product-led initiatives and the ongoing shift from open-source Kafka to Confluent's managed offerings. The company also noted that new products such as Flink and Tableflow are gaining traction, particularly among enterprise customers looking to support generative AI initiatives. Looking ahead, Confluent's leadership adopted a cautious approach to guidance, lowering full-year revenue projections while raising profit expectations. CFO Rohan Sivaram attributed this to slower consumption growth among larger cloud customers, who are prioritizing cost optimization over expanding new use cases. Sivaram stated, 'We are not assuming an immediate near-term rebound in consumption patterns,' reflecting a more prudent outlook amid macroeconomic uncertainty. Management expects expansion in hybrid and on-premise deployments to help offset cloud headwinds, while ongoing investments in product innovation and go-to-market execution remain central to Confluent's long-term growth strategy. Management attributed the quarter's outperformance to a mix of product differentiation, customer expansion, and the ability to meet diverse deployment needs. The following points capture significant drivers discussed during the call: Mission-critical use cases: Confluent's platform is increasingly powering core business processes, such as fraud detection in banking and real-time inventory in retail. Gross retention rates above 90% reflect the dependence customers have on these workloads. Open-source conversion momentum: The company highlighted continued success in converting organizations from open-source Kafka to its managed platform, referencing recent wins with and Audacy. This conversion is seen as a long-term engine for growth. Hybrid and multi-cloud flexibility: With customers looking for both on-premise and cloud-based solutions, Confluent's ability to support hybrid deployments has become a competitive advantage. The Confluent Platform business posted its strongest first-quarter growth in three years, buoyed by international OEM partnerships. Product expansion and AI integration: New offerings such as Flink (for real-time data processing) and Tableflow (for data pipeline management) are seeing early adoption. Management cited growing demand from enterprises integrating generative AI, with Confluent acting as the connective tissue for real-time data flows. Leadership update: Ryan Mac Ban was promoted to Chief Revenue Officer, consolidating global sales and customer-facing functions. His experience at UiPath and other enterprise software firms is expected to drive further go-to-market execution. Management expects a more measured growth trajectory in the coming quarters, shaped by macroeconomic factors and evolving customer behavior. Cloud consumption headwinds: Larger enterprise customers are slowing the addition of new use cases and focusing on optimizing existing cloud workloads, which is expected to temper revenue growth in the near term. Expansion of on-premise and hybrid deployments: The company anticipates that growth in on-premise and hybrid solutions, supported by OEM and international partners, will help balance softer cloud trends and provide resilience. Product innovation and AI demand: Management views new product launches—especially those supporting generative AI and real-time analytics—as potential long-term catalysts, though their near-term revenue contributions are expected to be modest as adoption ramps. Pinjalim Bora (JPMorgan): Asked about the impact of cost optimization among large cloud customers on existing versus new use cases; management said optimization cycles are ongoing, with smaller customers showing steadier consumption. Matthew Hedberg (RBC): Inquired about the sequential progress of DSP (Data Streaming Platform) products like Flink and Tableflow; CEO Jay Kreps said these products are outpacing core cloud growth but are still in early adoption phases. Michael Turrin (Wells Fargo): Questioned the timeline for new product ramp and go-to-market productivity; Kreps noted that Tableflow is priced separately, with broader adoption expected as it is launched across more cloud providers. Sanjit Singh (Morgan Stanley): Sought comparison between current optimization trends and prior cycles; Kreps observed that the current base is tighter, with less unoptimized usage than in previous years, limiting downside risk. Brad Zelnick (Deutsche Bank): Asked about the durability of free cash flow goals after compensation-related changes; CFO Rohan Sivaram affirmed that no further adjustments are anticipated beyond the one-time impact already disclosed. In the quarters ahead, the StockStory team will be tracking (1) the rate of new customer additions and whether top-of-funnel momentum sustains, (2) adoption and revenue impact from recently launched products like Flink and Tableflow, and (3) the degree to which on-premise and hybrid solutions can offset moderation in cloud consumption among larger customers. The ability of management to achieve expanded profitability targets while balancing investment in product and go-to-market will also serve as a critical benchmark. Confluent currently trades at a forward price-to-sales ratio of 6.5×. At this valuation, is it a buy or sell post earnings? See for yourself in our free research report. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). 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Yahoo
08-03-2025
- Business
- Yahoo
Why Confluent, Inc. (CFLT) Went Down on Friday
We recently compiled a list of the . In this article, we are going to take a look at where Confluent, Inc. (NASDAQ:CFLT) stands against the other stocks. Wall Street finished the trading week on a strong note, with all major indices recording gains as investors digested the latest US jobs data, which fell short of expectations. The tech-heavy Nasdaq posted the largest gain with 0.70 percent, followed by the S&P 500 with 0.55 percent, and the Dow Jones by 0.52 percent. Ten companies across mixed sectors bucked a wider market optimism, ending Friday in the red territory. In this article, we have listed the 10 worst-performing names and detailed the reasons behind their performance. To come up with the list, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume. A team of consultants in suits, discussing the importance of stream governance for real-time data. Confluent, Inc. (NASDAQ:CFLT) saw its share prices drop by 7.12 percent on Friday, a second consecutive day, to end at $26.61 each as investors sold off following the company's co-founder and CEO's disposition of shares. In a regulatory filing, Confluent, Inc. (NASDAQ:CFLT) said its CEO Jay Kreps planned to dispose of 465,000 shares in the company for a total amount of $14.97 million. Over the past three months, Kreps has already sold 232,500 shares. In other news, Confluent, Inc. (NASDAQ:CFLT) announced its partnership with sccc by stc, a leading cloud services provider in Saudi Arabia, to join the CFLT OEM Program as a managed service provider (MSP) to make data streaming more accessible in Saudi Arabia. The new partnership aligns with Saudi Vision 2030, an initiative that prioritizes technical innovation by helping accelerate digital transformations across key industries, including finance, retail, healthcare, and public services. Overall CFLT ranks 5th on our list of Friday's worst performers. While we acknowledge the potential of CFLT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CFLT but trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
